Strategic responses by Kenyan Tourism Industry to challenges brought about by E-commerce: a cae of Mombasa and Coast Tourist Association

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Abstract

New technology such as the internet and e-commerce has revolutionized the way companies conduct business and the tourism industry is no exception. Recently, many challenges have emerged as a result of the use of e-commerce as a strategic tool in the tourism industry. Hence, the need for companies to respond strategically to these e-commerce challenges. This study was done with the objective of establishing the challenges brought about by ecommerce m the tourism industry and the strategic responses towards these e-commerce challenges.
Primary data was collected by means of semi-structured questionnaire. The questionnaires were emailed to managers who are entrusted with the operations of the firms. Others were dropped and picked later. The response rate was 64% (32/50). The data was analyzed using descriptive statistics.
The results of the study showed that tourist firms have embraced e-commerce as a major strategic tool in their businesses; However, many firms experience a number of challenges. These challenges are mainly technological, infrastructural or regulatory. They include inadequate technological skills, limited user traffic, high accessibility costs, lack of government support, insecurity related to information abuse and insecurity related to payments.
The study revealed that firms have tried to respond strategically to the e-commerce challenges to ensure their survival and success. They have done this by mainly training staff on e-commerce, improving website accessibility, allocating budget for e-commerce, using a reliable ISP and applying secured website technologies. The study also showed that many companies would support government effort in improving and regulating e-commerce.